Is The Recession Behind Us?

February 26, 2010

If we are reading the newspapers and listening to some of the analysts on TV, we are reading and hearing people telling us that the economy is doing better. Just who do they think they are kidding? Certainly not the American people! The politicians in Washington think if we are told the economy is turning around, we will believe it. Well, all I can say is…

Get real! I don’t know about you, but I certainly am NOT fooled into believing that the economy is recovering, because it isn’t, yet. Unemployment is in double digits in the states, even if nationally it is 9.7%. The unemployment rate here in Wisconsin is 11%. People are very cautious, and they should be. President Obama tried to stimulate the economy by spending $787 Million we didn’t have to stimulate spending, bail out the auto industry, banks, and last but definitely not least, Mr. Bernanke and the Federal Reserve printed money to put a false bottom in the stock market last quarter.  Well, guess what? Stock prices are finally catching up with the padded market. People are finally realizing the impact that printed money had on the market.  Have we learned our lesson?

We (the American People) know exactly what has happened here and we have tightened our belts for the long haul. The fact of the matter is our legislators haven’t learned a thing. Our incumbents have turned a deaf ear and a blind eye to what has been going on. Our illustrious legislators told citizens of the Concorde Coalition that as long as we can keep printing money to keep our economy going, we will. Can you believe an answer like this? Our legislators don’t care that our country is going down the tubes here and they are the reason. Have any one of them had the “guts” to say “STOP IT?”  Do you think they would do it? Heavens no! They can’t agree, so they stopped talking!

We have to get off our complacent “butts” (please excuse the expression) and do something to stop the government from printing more money to solve our problems. The national debt is in the “Trillions.” Do you know what a “Trillion” is? I just know that a trillion dollars is 3 more zeros than a billion dollars. I’ve never seen that much money, have you? Our national debt has gone from billions to trillions with no end in sight unless we, the voters, stop the horrible spending. We also need to start creating jobs so people can go back to work.

I don’t think President Obama realized what he was getting into when he took office two years ago. He had the American people’s best interests at heart when he signed the Stimulus Bill. I’m sure he had no idea what was going to happen next. He probably thought he was going to have more say in how the country was run. Sorry Mr. President!  You are a figure head. Unfortunately, there is a House of Representatives and a Senate that have the real power over the country. Then, we have the Federal Reserve Board. What are they thinking, printing all this money? How are we going to fix this situation?

Let me recommend a few things and see what you think? Mr. Bernanke, we need to stop printing all this money. STOP PRINTING ALL THE MONEY! Let the economy and the market do what it can to correct itself. We need to pay off our debt. The American People are expected to pay off their debt, why shouldn’t the country take responsibility for its debt and stop expecting China to buy our debt. They have already quit!

Another recommendation is to get rid of the incumbents in Congress. Let’s vote all new Representatives and Senators into Congress and start fresh with legislators that have integrity and care about what happens to America. We need representatives that care about their constituents and want what’s best for the country as a whole. That is an excellent place to start, don’t you think?

Let’s see if we can get our country out of debt! Senators Gramm and Rudman tried it quite a few years ago. Somehow, their bill fell by the wayside. Our new battle cry should be, “Let’s Get Our Country Out of Debt!” The ball is in our court, so to speak. What I mean by that is, we need to let our legislators know that we are not going to tolerate all this spending. The bills need to be paid!

We need to get people back to work so families can get out of debt and we need to get our country to stop printing so much money and start living within our means. This all sounds so simple!

Did you know that most of the people getting new jobs in this difficult economy are being hired by small businesses? Absolutely! Did you also know that the IRS is taxing small businesses until it hurts? The IRS has hired a bunch of new agents to investigate small businesses to make sure the country is getting all the taxes that are due. Did you also know that 50% of the American people making less than $50,000 are not being taxed at all? The rest of the people are making up for it, small businesses included. How are we ever going to experience a recovery if the businesses that are providing new jobs are being audited and taxed even more. We are shooting ourselves in the foot, here.

We have the best country in the world no matter how many problems we are experiencing now. Let’s utilize our right to vote and get rid of all the representatives and senators that cannot stand up for what’s right. Let’s also put our support behind small businesses to decrease the unemployment rate. If our politicians can’t do what is right, let’s get them out of office. Let’s also make our government tighten its proverbial belt and stop spending. If we have to have a spending plan in our homes, so should our government.

Let me know if you agree or disagree. Comment. Don’t be afraid to tell me what you think.

By Diane | Posted in Business, Financial Independence, Get the Economy Back on Track, The Power of Education | Tagged , | Comments (0)

Are You Ready to Fly This New Year?

January 9, 2010

Well, here we are in a brand new year. Everyone has decided on new goals: new diets, exercise plans, new business plans, a new job, new clothes we got for Christmas, and perhaps a new lease on life. 2010 is a new year and the beginning of a new decade. We are ready for whatever life brings even if we are in a recession. We are not “…out of the woods” by any means yet, but if we put our nose to the grindstone, or some such thing, we can make the new year better than the previous year.

I’m sure you are looking at the paragraph above and saying, “Oh brother! Another person with a positive attitude! The fact is, the economy sucks no matter how you look at it. From what the experts say, nothing is going to get better for at least two years, not until 2012.”

We can look at these words and agree with them or we can look deep within ourselves and realize that the means for making things better for ourselves has been within us all along. You are probably thinking, “Oh sure! Tell me more fairy tales!”

Many families are having a hard time right now because they have lost faith in themselves. Many of us have put our faith in our employers to provide our livelihood. We work hard because that is what our parents, grandparents, and great grandparents told us to do to get ahead. All right, I’ve worked hard all my life and two years before retirement my company is broke. No job! No pension! No security! Now what should I do? Is it too late for me to retire? I’m 62 or even 65 years old! The only thing I know how to do is what I did for my company for the 40 years I worked for them. I don’t have any other marketable skills. Do I go back to work because I can’t afford to retire?

There are more than 75 million baby boomers asking themselves the same question as I write this article. Hopefully, many of these people invested wisely even though the stock market has been all over the graph in 2000-2003 and in 2008 through the present. How can people benefit when unemployment is at an all-time high and baby boomers are looking for jobs instead of looking forward to the fruits of their labor, a relaxed retirement?

EDUCATION! Everyone, the young as well as those of us that have worked hard all of our lives, need financial education and a deep sense of Spirit. Financial education needs to start when our children are in Kindergarten and should continue through high school, college, and adult life. We shouldn’t be relying on advice from our plumber, mechanic, or a family member who has no idea what he or she is talking about. Will we listen to someone who has no training in finance rather than a professional whose life’s work is helping people to make wise financial decisions?

Many people would rather act on free advice from a total stranger rather than do what their financial planner or investment adviser representative tells them. The fact is, most people are afraid of change. They are afraid because they don’t understand what the adviser or representative is telling them and would rather not change their investment strategies right now even though their investments have lost money in the past. Is that logical? Why would an intelligent human being decide to leave their investments in a mutual fund that has lost thousands of their dollars?

People think they know about their investments because a sales person told them that if they leave their money in for the long term, sooner or later the market will go up and they will profit in the long run. Buy and Hold! I lost thousands of dollars in the last five years in Buy and Hold investments until I found out that I no longer need to do this. There is another alternative out there. I invested my money with a money manager that will watch my investments very closely. If the market makes a downward fall, like it did in 2001-2002 and again in the last two years, my money manager will take my money out of the falling investments and put it into money market funds, cash, or inverse funds that make money other funds are losing money.

Please don’t get me wrong. Having my money in actively managed investments doesn’t mean I won’t lose money. What it does mean is that I won’t lose as much because my money manager will take my money out before the market goes down any further. Wouldn’t you like your money in an actively managed strategy where the money manager is watching your investment to make sure you are making as much money as the market will allow? That’s the strategy I want and have for my investments. My investment adviser representative has watched my strategy and the investment  and has shown me how to watch it on the website.

Right now everyone needs financial education in these uncertain times. Saving money is difficult when everything you have goes to pay bills and buy food. For those who have a few extra dollars, save it don’t spend it. Put it away in a jar. When you get $100.00, put it in the bank. Save a dollar or whatever you can. If you have the intention to save a dollar or two a day, the money will make itself available to you. Write down on a piece of paper what you want to save every single day and read it every day. Before you know it, you will have it. The money will be there for you to put in your jar every day. That is how the Law of Attraction works. If you believe that the money will come, it will. If you have any blockages or you don’t believe, the money will not come to you.

Financial education is necessary for people of all ages and it needs to begin now. We all need to believe that if we write down our intentions for money, abundance, prosperity, or whatever, read it every day and know we will receive it, the Law of Attraction will bring it to us. Think about it, practice it, and prosper!

By Diane | Posted in Breaking Bad Habits, Educational Opportunity, Financial Independence, Self Help Information, The Power of Education | Tagged , , , , , | Comments (0)

One Day Closer

December 17, 2009

This morning, as the alarm clock sounded 6:00 am, I turned off the sound and fell back to sleep. By 7:00 am, Hank (my dog) decided it was time to start the day. Oh Lord! I’ve wasted an hour, when I could have been studying for the Series 65 test to become a financial adviser. Tomorrow, Friday December 18th, is the day I take the test.

Last night, I took a practice test online and realized there were a few new concepts that weren’t mentioned in the coursework. Why do they always introduce things they didn’t talk about on a test? So, that is what I have to spend time on today. Even though I don’t have any experience in this area, I’m bound and determined to pass this test so I can help as many people as possible with strategies never before available to the every day investor.

Doesn’t that sound exciting? You better believe it is. There are thousands of people to talk to about tactical asset allocation (that much I can say without breaking financial laws), which were only available to investors with at least $500,000 or more to invest. Now I realize that your financial advisers are telling you that you have tactical asset allocation in your investments, but not like the kind my company can offer you. You can take advantage of this terrific strategy with as little as $5,000.

Before I got interested in a new career as an investment adviser, I thought working as a cashier would be enough to supplement my income. I have to tell you that working as a cashier at the local WalMart Supercenter didn’t bring in the salary I was used to receiving as a nurse. My medical disability retirement just isn’t enough to pay the bills, so I have to do something that I can get my head and heart around. For 40+ years, I took care of sick people helping to make them well. I felt very fulfilled as a nurse, but my body won’t tolerate the standing and lifting anymore. My new titanium knees are going to have to last for more than 20 years because the operations to get them were not a lot of fun, if you know what I mean.

Anyway, this test is supposed to be very comprehensive. A financial adviser has to know a little bit about everything. I have to know information from 3 or 4 different tests, e.g., the Series 6, 7, 63 and 66. For those of you with these licenses, you know what I mean. There is a lot of information on Economics, which I might add, is very enlightening. Even though I read the newspaper, I learned quite a bit of in depth information about the leading and lagging indicators that identify how good and bad the U.S. economy actually is.

Education, this is what this test is all about. In the long run, we need to educate everyone about the importance of learning about how money works and how money can work for us. For the longest time, I thought I was supposed to work hard for the money I made. My upbringing was such that I thought I was supposed to have good credit so I could get a loan for a house or a car in order to buy it. Guess what? That is the wrong way to go about buying big ticket items. The way to buy these is to make enough money to buy the things we want with cash, so we are not tied to it for the rest of our lives. This is what working for this company is going to do for me.

I’ve got to leave you now so I can study what I don’t know, about being a financial adviser. At 61, I’m about to start a new career as a financial adviser. Wish me luck! I’ll let you know how I do tomorrow after the test. Stay with me now!

By Diane | Posted in A Job or a Career!, The Power of Education | Tagged , , , , | Comments (0)

Are 401Ks the Strategy of the Future?

December 11, 2009

There has been an enormous amount of attention given to an article written by Robert Kiyosaki about 401K plans on the Yahoo Finance page. Many people read the article, and are very upset. They cannot believe that Robert would question the viability of 401Ks as the means of funding 75 million baby boomers’ retirement. As a matter of fact, a 401K is a glorified savings account. If this strategy is going to fund anyone’s retirement, there better be more than $500,000 to $1,000,000 or more in your plan.

I certainly hope the investment adviser representative that is managing your 401K is on the ball and has invested in the right strategies. However, if you have lost quite a bit of your investment in the last few years, you are not in the right strategy. You will never be able to retire if your 401K is invested in a “Buy and Hold” Fund. You are invested according to the Prospectus when the market is doing well. You are also invested according to the Prospectus when the market is going down. The manager can move the money around within the Fund, but his/her hands are tied by the Prospectus and cannot move your money out of the fund and put it in a money market or in cash if the market goes down. That would be known as a defensive strategy. Do your investments have a defensive strategy as well as an offensive strategy? I think not.

Many of you are not even sure what I’m talking about because I’m talking in a different language. I’m hoping if you are curious about what I’m talking about you will comment and ask some questions. However, if you do know what I’m talking about, let me tell you that most of us have never had much financial education. My upbringing was such that the people that brought me up were retired on the man’s pension and social security. This was more than 50 years ago. Our financial future and that of our children has changed dramatically.

For one thing, as a baby boomer, I’m aware that social security may not have enough money to fund my retirement let alone my 30-something children’s. I’m sure my grandchildren will want to know what Social Security was. They will read about it in their History books.

Let me take you back in History for a minute. When Social Security was created, people were not living as long as they are now. At that time, when a person, usually a man, retired, he didn’t live for 20 or 30 years past his retirement. Congress enacted Social Security at a time when people generally died before age 75. If someone lived longer, it was the exception, not the rule.

Now and in the future, people will be living well into their nineties and one hundreds in decent health because of breakthroughs in medical technology. If this is the case, we will need to start educating people about their own finances and how to invest in their own retirements. In my humble opinion, Social Security is a wonderful program that helped a lot of people, but unfortunately it was another good idea that ran out of money, not unlike Cash for Klunkers.

We all need to take responsibility for our own retirement. That means we have to get smart about our  investments. We need to be in the best investments that will consistently make money with the least amount of losses. Is that type of investment out there? You bet it is. Just ask me.

By Diane | Posted in Financial Independence, Is the 401K a Good Investment?, Wealth, What about Social Security? | Tagged , , , , , | Comment (1)

Not Just A Job, A Profession (Part 3)!

December 4, 2009

When I left you last, I promised to change your paradigms. Great, you say, but what in the world is a paradigm? According to Webster’s New World College Dictionary, paradigm is a “pattern or model.”  A pattern or model basically describes what happens when we are “employees.” As an employee, we are controlled by our employer’s policies and procedures. The time we spend with the employer is controlled by a time clock; or, if we work for a salary, we might work many more than 40 hours a week to make sure the work gets done. When I worked as an employee, I marveled at my co-workers as they stampeded towards the door at quitting time.

This is the first pattern or paradigm I would like to change. First of all, as stated above, the time you spend at work does not belong to you. When you punch the clock in the morning, you work until quitting time with a few breaks during the day for lunch and rest. Every working day is the same. Your time belongs to your employer for a paycheck. Your paycheck comes to you based on the job you are doing. You can be promoted until you reach the highest level. After that, there are no more promotions available for you to get more money, Then what!

If you think about this situation for just a minute, the description identifies two patterns or paradigms-your time and your pay. Your employer controls your time and there is a ceiling on what you can earn. Now, let me tell you about how these paradigms are different at our company. First of all, when you are appointed as an associate, the amount of time you put in is up to you. That means you might have to put in a lot of hours initially depending on whether you want to work full  or part-time. Either way, the decision is up to you. No one controls your time but you.  Secondly, there is no ceiling on what you can be paid. Again, you are in control of your pay. You can make as much money as you want and need. Your pay depends on the number of clients you take care of.

Another paradigm I would like you to think about is how we buy large ticket items like cars and homes. Generations before us have all done it the same way. If we want to buy a car, we go to the bank or savings and loan and ask them how much they will lend us and at what interest rate, correct? The same scenario holds true when we buy a home. We buy these items by going into debt. For all intents and purposes, neither of these items are assets, but banks consider them as such.

What if you waited a year or two or three to buy these items? If you are appointed as an associate, learn and utilize the “Business Format System” designed for success when used exactly as it is taught, you will make plenty of money to buy these items free and clear, without going into debt. Your money is considered an asset. Now, instead of incurring debt to pay for a liability, you can use your assets to pay for liabilities. That is what the rich people do.

Our business professionals are one of the highest paid in the country. This business can help you change your paradigms and become rich if you want to, or you can make enough to pay the bills and have some left over to take a vacation now and then. Whatever your needs and goals are, the business can be the catalyst to get you there.

If you are interested in learning more about the business, even more than you learned from these articles, you can either comment by leaving your contact information or you can call my mentor Mike Raber at 414-559-7535 or myself at 262-623-2218. You can call us no matter where you live, because our company is registered in 46 states. There are offices in pretty near every state also. If there isn’t an office where you live, maybe you can start one.

I hope these articles were helpful to those readers needing a job. Take care and I will see you tomorrow!

By Diane | Posted in A Job or a Career!, Educational Opportunity, Financial Independence | Tagged , , , , | Comments (0)

Are You in Need of A Job (Part 2)?

December 3, 2009

Baby Boomers! There are 76 Million baby boomers that need help in one way or another to make their investments last as long as they will live in retirement. Many people have investments, but they lost a lot of money when the market “tanked” in the year 2000 and then again in 2008. My investment lost 143 percentage points in 2008 alone. If I lost that many points, I’m sure there are a lot of folks out there in the same situation.

Not only are there baby boomers out there that need help, but there are also a large percentage of the population that needs to know that they are eligible for the same type of investment strategies that were available only to the rich. Did you know that 15% of the population is wealthy with $1,000,000 or more in savings and investments? Another fact is that various percentages equaling 85% identified the rest of the population with less than $1Million. Those of us with quite a bit less than $500,000 in investments need help identifying appropriate strategies that could give the best return on whatever we have to invest (Boston College School of Business Study, 1999-2004).

According to a very reputable source, there is a need for 50,000 financial advisers now and in the next 10 years to help not only the baby boomers, but also the rest of the population with less than a half million dollars to invest. In today’s economic situation, advisers are frustrated and are resigning their positions. Seasoned advisers are retiring with no one to take their places. So you see, there is a great need for financial advisers. There is a company available to provide the training system, the office space,  the administrative help, and the opportunity to build a business that will make money for you without your needing to be there day in and day out. Is this information striking a cord of curiosity in you? I hope so!

The fact is, most people are invested in what they feel are diversified strategies that can be moved around if the market goes down. That way, they feel like their investment is safe. Yes, investing like this diversifies your investment, but it doesn’t protect you from loss like differently managed investments. These differently managed investments are now available to people like you and I, with quite a bit less than a half million dollars. There are so many people out there that need help, people we all know and love.

Here we are! Folks that have grown up with the employee mentality. We go to work, punch a time card, report to a supervisor, work eight, ten, twelve or more hours, punch out and go home. At the end of two weeks, the paycheck is in an envelope or is direct deposited in your bank account. By the time all the bills are paid, i.e., the mortgage, association fees, credit card minimum payments, groceries, utilities, cell phone, cable and internet, etc., there is very little cash flow to work with. That means the day I described above as far as work is concerned starts over and over again until we receive the next pay check. For most of us, this is all we know.

If you own your own business, you feel as if you have achieved autonomy. You no longer have to deal with a supervisor or co-workers. There is no time clock to punch and you can work your own hours. This is great, just what you wanted, right? You are your own boss, but you are also the employee, the accountant, the supplier, the troubleshooter, the bookkeeper, etc. You have a whole wardrobe of hats. Sales or service happens as long as you are there to give it. If you leave, no one picks up the slack. If you go on a few days vacation, everything comes to a halt because you are not there. What you earn depends solely on you and your productivity.

Tomorrow, I will begin to change your paradigms about work. Just because you have grown up with an employee attitude does not mean you have to remain there. Your age does not matter in this company. So please, if you are interested in learning more about this tremendous business, leave a comment with your contact information. I will contact you in person.

By Diane | Posted in Self Help Information | Tagged , , , , , | Comments (0)

The Friday After Thanksgiving!

November 27, 2009

Hi Everyone! Here it is the Friday after Thanksgiving. Everyone has gone out shopping as of 4:00 a.m. this morning to get the best deals the retail stores can offer. I know quite a few people that went out early this morning to buy their Christmas gifts. I’m sure there were lines of people at the stores and around the block waiting to take advantage of the special deals.

During this time of economic recession, or any other time for that matter, people are looking to use their money wisely. This is the way people should spend their money every day of the year, instead of spending without care. Before going out to shop this year, everyone should make a budget. Make a list of the people that need a gift and then decide on a reasonable amount to spend on each individual.

Families can draw names and buy a nice gift for the person they choose. Parents focus on buying gifts for their children and then choose the name of an adult in their family. This way, every adult person in a family will receive a nice gift.

Saving money is very important during tough economic times. However, for some people, every year is tough. People who don’t make enough money all year around are suffering harder during the Christmas season. Many people have lost their jobs. They don’t have enough money to feed their own families let alone buy a gift for everyone in their family. Even these individuals can give gifts to everyone in their family.

If you don’t have enough money to buy something for each of their relatives, write on a 3″ X 5″ card something you can do for a family member that would be special, for example, clean out their garage, clean the basement, take a person out shopping, or just spend time with an older family member that does not get out much. Wrap the card in tissue paper and put it in a small box. Don’t forget to put a ribbon on it.

This type of gift does not cost you much money, other than the gasoline you use to get to their house and back. The gift is useful because you will be doing something that your family member may not have time to do himself or herself. Besides, what  can be a better gift than the pleasure of your company for a few hours.

There are a few more weeks until Christmas. Even if you have enough money to buy a gift for each one of your family members, don’t be afraid to use the above idea. The gift you give to a family member should matter because of the way you feel about them.

I hope this article was useful to you. Have a great rest of your Friday. Tomorrow is another day.

By Diane | Posted in Self Help Information | Tagged , , | Comments (0)

The Unemployment Rate

November 17, 2009

If our economy is in recovery, as identified by some of the financial leaders in the country,  why are there so many people unemployed? It is sure taking a long time for unemployment to turn around. Actually, the unemployment rate continues to grow.  During our last recession in 2001, unemployment rates didn’t start getting better until June of 2003. The Unemployment rate is the last strategic element to rise in a market recovery. Unfortunately, right now, many people are out of work and until things start to get better for sure, many more people will lose their jobs.

OK! That is enough bad news for one article. Here are a few demographics for you to think about. Did you know that every minute an individual out there is turning 60 years of age? Any person who is 60 years old, is known as a baby boomer. Well, here is another startling fact. Baby Boomers, all 76 million of us, may not be able to retire as expected because the majority of our companies have lost our pension funds. Our savings rates are nil to nothing. Those of us who make less than $50,000 per year are living pay check to pay check. This number only includes people who have jobs.

Now, here’s the good news. There is a need for 50,000 financial advisers! Why is that, you ask? The answer is that there are so many people that need help out there, i.e., 76 Million baby boomers and 85.5% of the population that make less than $500,000 per year and can afford to invest their money in a very special way so they don’t lose as much as those of us who are invested in a “Buy and Hold” strategy or mutual fund (this information comes from a study done by Boston College School of Business and Philanthropy in 1998).

I can hear everyone out there who is reading this article right now saying, “I don’t know anything about finance. I don’t even have an interest in the subject.” Well, all I can say to that is that’s fine. You can stop reading and continue to accept unemployment. However, if you are saying, you’ve got my attention tell me more, I would like to let you know about a terrific company that is expanding and looking for associates in their marketing division, financial division, and in administration.

As stated above, Investment News periodical identified a need for 50,000 new financial advisers in the next 5-10 years to work with baby boomers and a very large part (85.5%) of the population that really needs financial assistance now and in the future. Our company, Investment Advisors International (IAI), has 1,000 advisers. With 46 offices all over the United States and Canada, we are in need of 49,000 associates. With our Business Format System, even a nurse of 40+ years with almost no knowledge of finance (only what I learned in my undergraduate and graduate finance and statistic courses), can get the licenses needed to do this job and be paid handsomely, anyone can do it. Financial advisers are among the highest paid professionals in the country.

Our mission is to help families  become financially independent, and we focus on helping clients to make the best possible investments that will bring them the best return. We want our clients to “Win.” As advisers, we “Win” if our clients’ investments  increase in value, a “Win-Win Situation”  That’s what we are all about.

If you are unemployed and would like to hear more about this terrific employment opportunity, please comment on this article and leave your email address so I can contact you. Hope to hear from you soon! Take care!

By Diane | Posted in Financial Independence | Tagged | Comments (0)

Has Anyone Noticed The Value of the Dollar Lately?

November 4, 2009

The stock market has been reacting positively because of  President Obama’s stimulus programs. The Dow Jones and the NASDAQ have increased at respectable rates rising and falling, with a few more ups than downs in the last few months. Many of the experts think the market is recovering; however, others are not so sure. The value of the US dollar is going lower and lower. If it goes down any lower, the United States will NOT be the strongest country in the World economically. What’s going to happen if the U.S. dollar is no longer a trusted currency? What do YOU think?

Historically, the United States and other World Markets experience downturns about every 8 to 10 years, from which it takes about 2 years to recover. This particular downturn took the Housing market with it. The Real Estate bubble burst big time. Ordinarily, these would be great times for the real estate investor. The only problem with buying property these days, is that the banks are not in the greatest condition. There are very few banks for investors to get loans with reasonable interest rate to purchase residential or commercial properties. An example is  one local bank  here in Milwaukee is advertising a real estate loan with a rate of 4.99%. The small print says the loan  is an adjustable rate mortgage (ARM). The 4.99% is good for 5 years. After that, I shudder to think what the rate will be then.

Right now, times are difficult for the investor or the individual looking for a residence because property values have decreased exponentially. Existing homes have lost equity. On the bright side, people might benefit if they question their property taxes. Hopefully, every one reading this article will question their tax bills, so they can put some money in their pocket. If the value of your property is devalued, take advantage of it by questioning your tax bill. When your property taxes are lowered, put the difference in your savings account.

Speaking of savings accounts, at the beginning of 2009, statistics showed that people were not spending as much money because they were saving it. That was a great statistic. Experts were marveling because people were finally saving money and they made a point of reporting it. However, in the last few months, people stopped saving and started spending. Retailers are hopeful because they want people to spend money so they can make a profit. This is the way our economy is set up. Our economy needs people to spend money so it can show a recovery; on the other hand, people need to save and invest their money for retirement, for their children’s education, and many other personal reasons. In order for the economy to flourish, people need to spend their money big ticket items like  homes, cars, trucks, SUVs, etc. However, in order for most people to have these things, they have to have loans and be deep in debt. Right now, banks are in no position to lend money to anyone. The economy seems to be stuck between a rock and a hard place.

We need to change the way we spend money, and start saving more. Our generation and our children’s generation seems to think that the way to get a house or a car is to get a mortgage or a car loan. What is wrong with this picture? Everyone needs to be better educated to save more than we spend. We need to have enough money in savings accounts for an emergency fund, to pay cash for that dream car,  provide a large down payment for our dream house, or anything else we want. We also all need to be financially literate and independent. Our educational system needs to teach children about money and finance, how to save and the value of  investing. The only thing we know is how to borrow money for the things we want because that is what our parents did. For the most part, everyone is deeply in debt with a mortgage, credit cards, car loans, school loans, and various other loans. This scenario needs to change now.

The time has come to change our  paradigms about money and learn new ones.

If anyone out there is interested in changing his or her paradigm, please write a comment on this article. let me know how to contact you because I would love to help you.

As a post script to this article, I would appreciate it if the two individuals who subscribed to my blog in the last two weeks, please subscribe again. I had to abandon the last version of Wordpress and your email addresses were lost. Thank you again for reading these articles.

By Diane | Posted in Financial Independence | Tagged | Comments (0)